City of Fort Stockton considers settlement offer

Published 4:29 pm, Tuesday, February 8, 2011

-For the second night in a row the Fort Stockton City Council took no action on its consideration of whether to enter into an agreement with Fort Stockton Holdings.

Mayor Ruben Falcon said the council had a conversation with its attorneys about the issue on Tuesday but made no decision. The group had tabled the issue late Monday after a marathon-style public hearing where dozens of residents spoke against the city's consideration of supporting Clayton Williams' Fort Stockton Holdings and its water proposal.

"Right now I can't really comment on anything," Falcon said, speaking via telephone Tuesday night. "There was no council action."

At issue is whether the city will put its support behind Fort Stockton Holdings in its request to transport around 40 million gallons of water a day from its property in Pecos County to the Midland Freshwater District No. 1's property near Midland International Airport.

Initially, the city had fiercely opposed the request as it thought the pumping of water would leave Fort Stockton without sufficient resources to support its own citizens.

After commissioning a study of area water, though, the city found results that were similar to what Fort Stockton Holdings' study found -- that the transportation of water would not have a significant impact on the city's supply.

As part of the contract offered by Fort Stockton Holdings in exchange for the city's support, the company would donate $1.5 million to the city to reimburse it for costs incurred to conduct its water study, according to a summary provided by attorney Robert Rendall.

Fort Stockton Holdings also would agree that the city of Fort Stockton's right to pump water under its historic and present use permits takes precedence to Fort Stockton Holding's pumping permits, if they are granted.

Fort Stockton Holdings also would implement a monitoring program to test for water quality and aquifer levels in the area they hope to pump from, according to the summary.

"It's just a matter of educating people and getting over some of those fears," Rendall said, explaining they were trying to assure residents the quantity and quality of water would not be affected by the company's project through the offer of continually testing the area.

Whether the water can eventually be pumped from Williams' property -- where it was previously used to irrigate alfalfa -- still is up to the Middle Pecos Groundwater Conservation District. It will consider Fort Stockton Holdings' request for pumping permits during an April hearing.

Having the city's support would be a plus in their request, Rendall said.

If the permits are eventually granted and the project operational, Fort Stockton Holdings has agreed to make a $3 million donation to the city to beautify and develop Rooney Park and Comanche Springs. The company would also make an annual donation of $300,0000 to maintain the facilities.

The company also would provide monthly reports on water quality and aquifer levels to the city as well as reimbursing the city for any additional costs associated with treatment or production of water incurred because of the project.

Residents in Fort Stockton told council members on Monday they still think the project could put their own supply in jeopardy and is not something they want to support.

Fort Stockton Holdings, Rendall said, simply will wait for a decision from the city.